In May 2026, marking a reversal of last month’s pattern, inflows in hybrid funds dipped by nearly 50% sequentially and stood at Rs10,560 crore. Flows into other schemes stood at Rs 362 crore, sharply lower than Rs 20,082 crore
FinTech BizNews Service
Mumbai, 11 June 2026: Association of Mutual Funds in India (AMFI) has released MF industry’s Monthly Data for May 2026.
https://fintechbiznews.com/finserv-mf-amcs/sip-assets-rs17-tn-form-21-of-industrys-aum
Mutual Fund Industry’s leading voices provide their studied opinions on the latest AMFI data points:
Juzer Gabajiwala, Director, Ventura:
“There has been an across the board drop in collections in mutual funds. Neither equity nor hybrid and even debt funds have not been spared. Investors appear to be now fatigued with the markets which has been completely sideways for past 2 years. SIPs have also dipped continuously for past 2 months. The trend could lead to more stoppages with even the FIIs selling off from India. The next 2 months will be critical for the Indian markets as we would see impact of monsoon as well as 1st quarter results for FY 26-27.”
Sanjay Agarwal, Senior Director, CareEdge Ratings:
“In May 2026, marking a reversal of last month’s pattern, inflows in hybrid funds dipped by nearly 50% sequentially and stood at Rs10,560 crore. Flows into other schemes stood at Rs 362 crore, sharply lower than Rs 20,082 crore in due to outflows in gold and Other ETFs. The outflow could indicate some profit booking by investors after gold's strong run in the year. Meanwhile, Equity mutual funds inflows too dropped by nearly 40% sequentially to Rs22,908 crore, a 12-month low. Even as the equity fund inflows have remained positive for over five consecutive years and show long term resilience of investor participation in market-linked instruments, the lower inflows could be attributed to near-term caution among investors amid significant market volatility as crude oil prices remain elevated and hover around the $100 a barrel mark. Macro headwinds and currency depreciation also contributed to the uncertainty with the Nifty50 declining by over 2% in May.
Debt mutual funds, on the other hand, saw net outflows of Rs0.97 lakh crore, a reversal from the Rs2.47 lakh crores inflows during April 2026 and which was also witnessed last May. The total AuM fell by 4.65% sequentially Rs18.25 lakh crores. Over 70% of the outflows came from the shorter end of the curve i.e. from three categories namely, liquid, money market and overnight funds which could be attributed to seasonality of corporate treasury management and tax cycles.
The mutual fund industry’s assets under management marginally dipped sequentially by 0.4% to Rs81.58 lakh crore in May 2026 with open ended schemes continuing to account for a bulk of the industry AuM.
New issuances continued to remain muted as only 13 new fund offerings were launched in May 2026, collectively mobilising Rs471 crore which was nearly a half of the amount collected last month. A single value/ contra fund accounted for 57% of this mobilization with the balance coming from passive funds, including index funds and ETFs.”
Umesh Sharma, CIO-Debt, The Wealth Company Mutual Fund:
“Debt-oriented schemes witnessed significant redemptions of approximately Rs97,000 crore in May, led by outflows from the shorter end of the curve, particularly liquid, overnight, and money market funds. The withdrawals were driven by tighter liquidity conditions, which pushed short-term yields higher. Elevated Bank CDs and securities papers supply further weighed on the short end of the market. Additionally, sustained energy price levels and concerns over El Niño’s impact dampened sentiment, with investors anticipating tighter monetary conditions ahead of the Reserve Bank of India’s policy meeting in early June.
Equity-oriented schemes saw a moderation in flows during May, with net inflows easing to around Rs22,000 crore compared to over Rs35,000 crore in each of the preceding three months. Despite this slowdown, investor preference remained firmly tilted towards the broader market, as mid-cap, small-cap, and flexi-cap funds attracted the highest inflows, while large-cap funds witnessed relatively subdued participation.
Hybrid schemes also reflected a moderation in activity, recording inflows of nearly Rs10,000 crore, though arbitrage and multi-asset allocation funds continued to be the most favored categories, underscoring demand for diversified and lower-volatility strategies.
In contrast, inflows into other categories such as index funds, ETFs, and gold funds were muted, suggesting a more cautious stance towards passive and commodity-linked exposures during the month.”
Vaibhav Chugh, CEO, Abakkus Mutual Fund:
The moderation in net inflows during May reflects a degree of geopolitical uncertainty and investor caution; however, we view this as a phase of healthy consolidation rather than any reversal in sentiment. Having witnessed strong inflows in recent months, a cooling-off period is both natural and constructive for the market. Importantly, industry AUM remains resilient at over Rs81 lakh crore, with the marginal decline largely driven by market movements and institutional outflows in debt schemes rather than any structural slowdown. The outflows seen in fixed income categories particularly liquid, overnight, and money market funds are indicative of liquidity management and corporate treasury requirements, rather than a weakening in demand.
On the equity side, while inflows moderated to Rs22,908 crore from April levels, they remain firmly positive. This also shows the continued confidence of investors in equities as a long-term wealth creation vehicle, despite ongoing market volatility and valuation concerns. We are encouraged to see flexi-cap funds leading inflows, followed by mid-cap, small-cap, and large & mid-cap categories, reflecting a clear preference for diversification and active management in a selective market environment. The moderation in flows across these segments suggests that investors are becoming more discerning, which is a positive trend. In the current environment, where opportunities exist across market caps but require careful selection, reliance on experienced investment managers is becoming increasingly important.
Additionally, stable SIP inflows at Rs30,954 crore for the month highlight the maturity of retail investors and the structural strength of domestic participation. This consistency reinforces the long-term investing discipline that is critical for sustained wealth creation. Overall, while near-term uncertainties persist, the underlying fundamentals of investor participation and confidence in the mutual fund industry remain strong. We continue to remain cautiously optimistic as we look ahead.”
